Market history · Geopolitics ·
Oil and gold rise after the Hamas attack on Israel
After the Hamas attack on Israel on 7 October 2023, oil prices jumped by more than 4% when markets opened on Monday 9 October, as reported by CNBC. US stocks declined, and investors moved into assets seen as safer. Gold later reached $2,000 an ounce on 27 October, which Bloomberg linked to the Israel-Hamas conflict.
The key question for oil markets was whether the war would widen to involve Iran or disrupt Gulf supply, and oil gave back much of its early gain when that did not happen at once. Within weeks the conflict was followed by attacks on merchant shipping in the Red Sea.
The takeaway
Safe-haven assets and oil react to the risk of escalation before any physical effect appears.
Sources
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